Israelis face major price hikes

Israelis on Wednesday saw the prices of basic state supervised goods go up by one percent following an increase of the value added tax (VAT) or sales tax to 16.5 percent.

That means the price of bread, salt and other common staple goods has increased by an amount that will greatly impact the country's poorer sectors of society. With rising oil prices, the price of fuel in Israel also rose by about 20 cents per gallon overnight.

Additionally, Israel's Water Authority is working hard to push a bill through the Knesset that will significantly increase the cost of water in an effort to reduce water waste and avoid a drought.

The increase will see Israelis pay 250 percent more for every cubic meter of water over the permitted monthly amount. That new tax will be imposed retroactively as soon as it gains Knesset approval.

Consumer groups cited by the local media worried that the new taxes will also result in local businesses hiking up their prices.

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